Nubank, one of Latin America’s biggest financial technology firms, reported record-high revenue and beat earnings estimates for Q1 2023 after adding 4.5 million new users through the quarter. Following the report, the bank’s stock surged 5.4% in premarket trading today.

Nubank Beats Earnings Estimates for Second Time in Four Quarters

Shares of Nu Holdings Ltd, the holding company for Nubank, soared 5.4% in premarket trading Tuesday after the Warren Buffet-backed digital bank reported record revenue for Q1 2023, fueled by consistent user base growth and growing average revenue per customer.

The financial report represents the second time Nubank topped Wall Street earnings estimates over the past four quarters. This time, the Brazil-based bank recorded quarterly earnings growth of 33.33%, reporting earnings per share (EPS) of $0.03, while analysts expected a loss per share of $0.01.

The premarket leap takes Nubank’s year-to-date share price gains to more than 55%, marking an outstanding rebound after a sharp sell-off that halved the bank’s stock value in 2022. The recovery was also helped by Nubank successfully managing the recent banking turmoil as demand for its credit cards, and loans remained robust in its key Latin American market.

“We have an exceptional capital position and excess liquidity, operate a low-cost platform, and continue to increase our product portfolio and customer engagement.”

– said CEO David Vélez in a statement.

Nubank Reports Highest-ever Revenue

In the quarter ended March 31, Nubank added 4.5 million new customers, bringing the total number of users to 79.1 million. The total user count grew by 33% compared to the year-ago quarter.

The digital bank reported monthly average revenue per active customer (ARPAC) of $8.6, up 30% from the same period in 2022. Gross profit surged 124% to $650.9 million in Q1, while adjusted net income jumped to $182.4 million from just $10.1 million last year. The report’s highlight was revenue, which almost doubled from the year-ago quarter to hit a new all-time high of $1.6 billion.

Founded in 2013, Nubank is the fifth-largest financial institution in Brazil. Apart from traditional financial services, the bank also operates a crypto exchange, which more than 1.8 million customers use.

Last year, the fintech giant also announced plans to roll out its native cryptocurrency in 2023. The cryptocurrency, Nucoin, was launched on March 1 as part of Nubank’s customer rewards program and serves as “a new way to recognize customer loyalty and encourage engagement with Nubank products.”

This article originally appeared on The Tokenist

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